The long-run effects of corporate tax reforms
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- dc.contributor.author Baley, Isaac
- dc.contributor.author Blanco, Andrés
- dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
- dc.date.accessioned 2024-11-14T10:10:16Z
- dc.date.available 2024-11-14T10:10:16Z
- dc.date.issued 2022-01-13
- dc.date.modified 2024-11-14T10:08:22Z
- dc.description.abstract We investigate the long-run effects of permanent corporate tax reforms on aggregate capital behavior. In an investment model with fixed adjustment costs and partial irreversibility, we show that corporate taxes and investment frictions jointly determine three interconnected macroeconomic outcomes: (i) capital allocation, (ii) capital valuation, and (iii) capital fluctuations around steady-state. Using corporate tax and firm-level investment data from Chile, we discover that a lower corporate income tax improves the allocation of capital, reduces capital valuation, and accelerates capital fluctuations.
- dc.format.mimetype application/pdf*
- dc.identifier https://econ-papers.upf.edu/ca/paper.php?id=1813
- dc.identifier.citation
- dc.identifier.uri http://hdl.handle.net/10230/68693
- dc.language.iso eng
- dc.relation.ispartofseries Economics and Business Working Papers Series; 1813
- dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
- dc.rights.accessRights info:eu-repo/semantics/openAccess
- dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
- dc.subject.keyword corporate taxes
- dc.subject.keyword investment frictions
- dc.subject.keyword fixed adjustment costs
- dc.subject.keyword irreversibility
- dc.subject.keyword lumpiness
- dc.subject.keyword capital misallocation
- dc.subject.keyword tobin’s q
- dc.subject.keyword transitional dynamics
- dc.subject.keyword inaction
- dc.subject.keyword propagation
- dc.subject.keyword Macroeconomics and International Economics
- dc.title The long-run effects of corporate tax reforms
- dc.title.alternative
- dc.type info:eu-repo/semantics/workingPaper